Global Private Equity Performance Series
In most of modern finance, things tend to matter only if they can be measured precisely and frequently. By contrast, …
Oct 01, 2019
In three decades, private equity has developed from a cottage industry managing an estimated hundred billion of dollars to a fullyfledged asset class with close to three trillion of assets under management. This fast growth has been relatively immune to macroeconomic booms and busts, but it is unclear how long this rapid development can continue.
Fund managers compete with each other to raise capital regularly. If the pace of capital inflows in private equity abates or stabilises, this competition will increase. Fund managers will have to work harder to attract capital. This would also reduce some of the pressure on pricing, potentially leading to better longterm returns.
Fund investors track capital inflows to deploy their own capital effectively. Although sophisticated investors avoid market timing, they build their asset allocation dynamically. Their task is to deploy capital while avoiding overheated markets. Part of their challenge is
to track capital raised, raised but undeployed (“dry powder”) and capital already deployed.
Global Private Equity Performance Series
In most of modern finance, things tend to matter only if they can be measured precisely and frequently. By contrast, …
Oct 01, 2019
AI²: Alternative Investments Meet Artificial Intelligence
The profitability and investment potential into AI is not a contentious topic. But to what extent could AI disrupt and …
Sep 26, 2019
Private vs. public:
co-movements are stronger than you think
The quarterly movements of multiples of US LBO funds and major US stock indexes appear to be significantly positively correlated, …
Sep 20, 2019